Article ID: | iaor20113990 |
Volume: | 22 |
Issue: | 1 |
Start Page Number: | 83 |
End Page Number: | 98 |
Publication Date: | Mar 2011 |
Journal: | Information Systems Research |
Authors: | Chellappa Ramnath K, Sin Raymond G, Siddarth S |
Keywords: | marketing, economics, e-commerce |
A large body of research in economics, information systems, and marketing has sought to understand sources of price dispersion. Previous empirical work has mainly offered consumer‐ and/or product‐based explanations for this phenomenon. In contrast, our research explores the key role played by vendors' price‐format adoption in explaining price dispersion. We empirically analyze over a half‐million online and offline prices offered by major U.S. airlines in the top 500 domestic markets. Our study shows that a vendor's price format remains an important source of price dispersion in both channels